Secure Waste Infrastructure Corp.

Good afternoon, ladies and gentlemen, and welcome to SECURE announces first quarter 2024 results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Thursday, April 25th, 2024. I would now like to turn the conference over to Alison Prokop. Please go ahead.

Thank you. Welcome to Secure's conference call for the first quarter of 2024. Joining me on the call today is Rani Amiro, our Chief Executive Officer, Alan Grant, our President, Chad Magus, our Chief Financial Officer, and Corey Haim, our Chief Operating Officer. During the call today, we will make forward-looking statements related to future performance, and we will refer to certain financial measures and ratios that do not have any standardized meaning prescribed by GAAP and may not be comparable to similar financial measures or ratios disclosed by other companies. The forward-looking statements reflect the current views of SECURE with respect to future events and are based on certain key expectations and assumptions considered reasonable by SECURE. Since forward-looking information addresses future events and conditions, by their very nature, they involve inherent assumptions, risks, and uncertainties, and actual results could differ materially from those anticipated due to numerous factors of risk. Please refer to our continuous disclosure documents available on CDER+, as they identify risk factors applicable to SECURE Factors which may cause actual results to differ materially from any forward-looking statements and identify and define our non-GAAP measures. Today, we will review our financial and operational results for the first quarter of 2024 and our outlook for the remainder of the year. I will now turn the call over to Rennie for his opening remarks.

Thank you and good afternoon, everyone. We are pleased to report a fantastic start to 2024. with first quarter results meeting our expectations, allowing us to narrow our adjusted EBITDA guidance to $450 to $465 million for the year. Our strong financial performance continues to underscore the stability and growth potential of our waste management and energy infrastructure business. During the quarter, we were extremely pleased to close the $1.15 billion asset sale to an affiliate of Waste Connections, Proceeds from the sale transaction as well as continued strong free cash flow generation provides the corporation with significant capital allocation optionality for 2024 and beyond, facilitating our ability to execute on all secure strategic priorities. With a solid foundation and clear direction, we're confident in our ability to protect the base business and seize new opportunities to create value for our shareholders. We also remain committed to enhance shareholder returns through our 40 cents per share annualized dividend and share repurchases, all while maintaining low leverage. Over the past few months, we have materially strengthened our capital structure with debt repayment and financing. In February, we repaid the entire amount drawn on the $800 million revolving credit facility and redeemed the senior second lien secured notes due 2025. In March, we closed the offering of the six and three-quarter five-year senior unsecured notes with an aggregate principal balance of $300 million. Net proceeds from the offering, along with cash on hand, were used to redeem the outstanding principal amount of the seven and a quarter senior unsecured notes due 2026. At March 31st, 24, the corporation had $264 million of cash, an unused debt capacity of approximately 7%. for shareholder returns and funding of growth initiatives. During the quarter, we repurchased and canceled approximately 12.1 million shares under the normal course issuer bid at a weighted average price per share of $10.47 for a total of $126 million, reducing our shares outstanding by 4%. The corporation repurchased an additional 2.8 million shares subsequent to the quarter end. We also paid our quarterly dividend of $0.10 per common share, which currently represents an attractive yield of 3.5% on our common shares compared to peers. And finally, today we announced an increase to our unexpected capital spend in 2024 to $75 million, up from the $50 million previously announced. The increase relates to customer agreements for a produced water pipeline to a waste processing facility, as well as processing equipment for Phase 3 at the Clearwater Heavy Oil Terminal. We continue to have a solid pipeline of organic growth opportunities and will consider acquisitions that meet its investment criteria and enhance its core operations and waste management and energy infrastructure. I believe this is only the beginning for Secure. We are well positioned with the right people, the asset network and financial flexibility to take us on our next phase of growth. As previously announced, I will retire as CEO on May 1st, 2024. The leadership transition with Alan Grange, assuming the role of president and CEO, marks the beginning of an exciting new chapter for the corporation. I am proud of what we have accomplished together and even more excited about our future. Alan's proven leadership capabilities, extensive experience, and diverse skill set will allow for a seamless succession and guide Secure as it moves forward. I look forward to continue to support Secure's strategy as vice chair of the board. I'll now pass it